Q&A Hero

Q: green, inc. had 200,000 shares of common stock outstanding before a stock split occurred and 400,000 shares outstanding after the stock split. the stock split was a.2-for-4 b.4-for-1 c.1-for-4 d.2-for-1

Q: if the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to a.decrease total assets and total stockholders equity b.increase stockholders equity and to decrease total liabilities c.decrease total retained earnings and increase total liabilities d.reduce the amount of retained earnings available for dividend declarations

Q: An advantage of a company selling its receivables is that it immediately receives cash for operating and other needs. a. True b. False

Q: For each of the following, explain whether the issue would require you to prepare a journal entry for your company, assuming any original entry is correct. If an entry is required, please include it as part of your answer.​(1) The bank recorded your deposit as $91 rather than the actual amount of $191.(2) Two outstanding checks amounted to $450.(3) Company Check No. 538 for postage was recorded incorrectly by the company bookkeeper as $50 instead of $59. (4) The bank paid a check for $500 after the company had issued a stop payment and voided the check.(5) An EFT deposit was made by one of the company’s customers, Atlas Design, for merchandise received. The sale had previously been recorded when shipped and was equal to the payment amount of $125.

Q: a net loss a.occurs if operating expenses exceed cost of goods sold b.is not closed to retained earnings if it would result in a debit balance c.is closed to retained earnings even if it would result in a debit balance d.is closed to the paid-in capital account of the stockholders equity section of the balance sheet

Q: retained earnings are occasionally restricted a.to set aside cash for dividends b.to keep the legal capital associated with paid-in capital intact c.due to contractual loan restrictions d.if preferred dividends are in arrears

Q: Jackson Industries has collected the following information but needs assistance completing the table. The cash payments (checks) were 90% of collections (deposits).Cash​??Beg. balance$511,770Deposits??Checks$102,275End. balance​How much was the beginning balance of the cash account?

Q: Describe the features of a voucher system, and list typical supporting documents for a voucher.

Q: Miles Co. had these transactions during the current period.InstructionsPrepare the journal entries for the preceding transactions.

Q: the following items were shown on the balance sheet of martin corporation on december 31, 2012:instructionscomplete the following statements and show your computations.(a)the number of shares of common stock issued was _______________.(b)the number of shares of common stock outstanding was ____________.(c)the total sales price of the common stock when issued was $____________.(d)how much did the treasury stock cost per share? $_______________(e)what was the average issue price of the common stock? $______________

Q: Garden Gate, Inc. reported the following data in its August 31 annual report:Cash and cash equivalents $ 485,625Cash flow from operations(630,000)a. What is the company’s “cash burn” per month?b. What is the company’s ratio of cash to monthly cash expenses?c. Interpret the ratio you computed in (b). What are the implications for Garden Gate, Inc.?

Q: List the principal advantages of electronic funds transfers.

Q: The corporate charter of Torres Corporation allows the issuance of a maximum of 3,000,000 shares of $1 par value common stock. During its first three years of operation, Torres issued 1,560,000 shares at $15 per share. It later acquired 60,000 of these shares as treasury stock for $25 per share.InstructionsBased on the above information, answer the following questions:(a) How many shares were authorized?(b) How many shares were issued?(c) How many shares are outstanding?(d) What is the balance of the Common Stock account?(e) What is the balance of the Treasury Stock account?

Q: On November 1, 2012, Kalen Corporation’s stockholders’ equity section is as follows:On November 1, Kalen declares and distributes a 15% stock dividend when the market value of the stock is $14 per share.InstructionsIndicate the balances in the stockholders’ equity accounts after the stock dividend has been distributed.

Q: The following data are from Autumn Company for the past four years. ​Year Ending December 31​Year 1Year 2Year 3Year 4Cash and cash equivalents$ 23,788$ 45,776$ 52,899$ 82,744Cash flow from operations (32,556) (47,880) (32,357) (16,450)​Compute the following:​Year Ending December 31​Year 1Year 2Year 3Year 4Monthly cash expenses​​​​Ratio of cash to monthly cash expenses​​​​

Q: Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2012, there were 600,000 shares issued and outstanding. On June 30, 2012, the board of directors declared a $0.30 per share cash dividend to be paid on August 1, 2012.InstructionsPrepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

Q: The following procedures were recently implemented at Health Station, Inc. For each procedure, indicate whether the internal control over cash represents a strength or a weakness. If it is a weakness, explain how the control can be strengthened.​a. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.​b. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer’s office for approval.​c. At the end of each day, all cash receipts are placed in the bank’s night depository.​d. The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

Q: The Huntsman Corporation has the following stockholders’ equity accounts:Preferred StockPaid-in Capital in Excess of Par Value—Preferred StockCommon StockPaid-in Capital in Excess of Stated Value—Common StockRetained EarningsTreasury Stock—CommonInstructionsClassify each account using the following tabular alignment.

Q: On April 2, Granger Sales decides to establish a $125 petty cash fund to relieve the burden on Accounting.​a. Journalize the establishment of the fund.b. On April 10, the petty cash fund has receipts for mail and postage of $43.50, contributions and donations of $29.50, meals and entertainment of $38.25, and $13.55 in cash. Journalize the replenishment of the fund.c. On April 11, Granger Sales decides to increase petty cash to $200. Journalize this event.

Q: In its first year of operations, Martinez Corporation had the following transactions pertaining to its $20 par value preferred stock.Feb. 1 Issued 8,000 shares for cash at $24 per share.July 1 Issued 6,000 shares for cash at $25 per share.Instructions(a) Journalize the transactions.(b) Indicate the amount to be reported for (1) preferred stock, and (2) paid-in capital in excess of par value—preferred stock at the end of the year.

Q: The actual cash received during the week ended June 6 for cash sales was $8,276, and the amount indicated by the cash register total was $8,262. Journalize the cash receipts and cash sales.

Q: Samson Company had the following transactions.1. Issued 4,000 shares of $100 par preferred stock at $107 for cash.2. Issued 8,000 share of common stock with a par value of $10 for $110,000.3. Purchased 500 shares of treasury common stock for $12,000.InstructionsPrepare the journal entries to record the above stock transactions.

Q: The following procedures were recently implemented at Pampered Pets, Inc. For each procedure, indicate whether the internal control over cash represents a strength or a weakness. If it is a weakness, explain how the control can be strengthened.a. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.b. At the end of the day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank.c. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing.d. Along with the petty cash receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund.

Q: On January 1, 2012, Wooden Company issued 12,000 shares of $2 par value common stock for $120,000. On March 1, 2012, the company purchased 2,000 shares of its common stock for $15 per share for the treasury.InstructionsJournalize the stock transactions of Wooden Company in 2012.

Q: Roper Electronics received its bank statement for the month of August with an ending balance of $11,775. Roper determined that Check No. 613 for $155 and Check No. 601 for $420 were both outstanding. A $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected $5,250 on a note receivable, which included interest of $250. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked “NSF.” The ending balance of the Roper cash account is $12,938.​a. Prepare a bank reconciliation as of August 31.b. Journalize any necessary entries based on the bank reconciliation.

Q: An inexperienced accountant for Teahan Corporation made the following entries.instructionson the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. (omit explanations.)

Q: Bank reconciliation information for Kaden Co. for May 31 is as follows:(1) The bank statement balance is $2,936.(2) The cash account balance is $3,194.(3) Outstanding checks amounted to $465.(4) Deposits in transit are $655.(5) The bank service charge is $50.(6) A check for $97 for supplies was recorded as $79 in the ledger.Journalize any necessary entries related to the reconciliation data.

Q: Stephanie Jo Company established a petty cash fund of $300 on May 1. At the end of the month, the petty cash fund has $42 in cash and receipts for postage, $39; entertainment, $146; and office supplies, $70. Journalize the necessary entries related to petty cash. Record any discrepancy in the cash short and over account.

Q: Patrick Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2012, the company has the following stock transactions.instructionsjournalize the transactions for patrick corporation.

Q: Two features of internal control are presented in the following sections. Each is followed by a list of four irregularities that occurred in processing data. Identify the one irregularity from each list that would be discovered or prevented by the feature of internal control described.a. The sum of the balances of the accounts in the accounts receivable subsidiary ledger is compared at the end of each month with the balance of the accounts receivable account in the general ledger by a person who has no responsibility for maintaining either the general ledger or the subsidiary ledger. (1) Five hours of services were rendered but the customer was only billed for four hours. (2) A cash receipt of $750 was recorded correctly in the accounts receivable controlling account but was posted to the customer's ledger as $75. (3) A bill for services rendered to Cole Co. was erroneously posted to the account of Coleman Co. in the accounts receivable subsidiary ledger. (4) No entry was made in the accounting records for services rendered to a customer. b. Both cash and credit charges for services rendered are recorded on prenumbered invoices. At the end of the day, all invoices are accounted for before the duplicate copies of the invoices are routed to the Accounting Department for entry into the accounts and the cash is sent to the Cashier's Department for deposit. (1) Some charge customers complained that the monthly statements of account did not add all amounts correctly. (2) Some clerks used incorrect hourly rates in preparing invoices. (3) Some clerks destroyed duplicate copies of cash invoices and misappropriated the cash. (4) Some charge customers complained that the monthly statement of account did not indicate credits for payments made.

Q: Identify (by letter) each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization.A = AdvantageD = DisadvantageN = Not Applicablecharacteristics

Q: The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:(1) Checks outstanding totaled $5,975.(2) A deposit of $3,796 had been made too late to appear on the bank statement.(3) A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account.(4) The bank collected $4,515 on a note left for collection of which $515 was interest revenue.(5) Bank service charges for May amounted to $70.(6) A check for $894 was returned by the bank because of insufficient funds.a. Prepare a bank reconciliation as of May 31. b. Journalize any necessary entries based on the bank reconciliation.

Q: 1. Name at least three advantages of a corporation.2. Corporations acquire treasury stock for a variety of purposes. Name three reasons why a corporation may acquire treasury stock.

Q: Journalize the entries for the following transactions:Mar. 1 Established a petty cash fund of $300. 31 The amount of cash in the petty cash fund is now $64. The fund is replenished based on the following receipts: office supplies, $137; selling expenses, $112.Journalize any discrepancy in the cash short and over account.

Q: the declaration of a stock dividend will a.increase paid-in capital b.change the total of stockholders equity c.increase total liabilities d.increase total assets

Q: Journalize the entries for the following transactions:Sept. 1 Established a petty cash fund of $350. 30 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, $116; postage, $100.

Q: the declaration and distribution of a stock dividend will a.increase total stockholders equity b.increase total assets c.decrease total assets d.have no effect on total assets

Q: Aspen, Inc. reported the following data in its annual report:Cash and cash equivalents $ 460,000Cash flow from operations (240,000)a. What is the company’s “cash burn” per month?b. What is the company’s ratio of cash to monthly cash expenses?

Q: which of the following would not affect the balance of the retained earnings account? a.net income b.stock dividend c.stock split d.gains and losses of a company

Q: List and define each of the five elements of internal control.

Q: which one of the following events would not require a journal entry on a corporations books? a.2-for-1 stock split b.100% stock dividend c.2% stock dividend d.$1 per share cash dividend

Q: The actual cash received during the week ended October 31 for cash sales was $23,447, and the amount indicated by the cash register total was $23,457. Journalize the cash receipts and cash sales.

Q: if a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is a.common stock dividends distributable b.common stock c.paid-in capital in excess of par d.stock dividends

Q: Journalize the entries for the following transactions:June 1 Established a petty cash fund of $200. 30 The amount of cash in the petty cash fund is now $57. The fund is replenished based on the following receipts: postage, $25; entertainment, $100; and miscellaneous, $20.

Q: on january 1, ripken corporation had 60,000 shares of $10 par value common stock outstanding. on march 17 the company declared a 10% stock dividend to stockholders of record on march 20. market value of the stock was $13 on march 17. the stock was distributed on march 30. the entry to record the transaction of march 30 would include a a.credit to common stock for $60,000 b.debit to common stock dividends distributable for $78,000 c.credit to paid-in capital in excess of par value for $18,000 d.debit to stock dividends for $18,000

Q: Consider the following journal entry made by Jones Company for one day's sales of a single cashier. What might have happened to create this amount of Cash Short and Over difference? Give three possible reasons for this difference.Cash 2,235 Cash Short and Over 100 Sales 2,135

Q: on january 1, ripken corporation had 60,000 shares of $10 par value common stock outstanding. on march 17 the company declared a 10% stock dividend to stockholders of record on march 20. market value of the stock was $13 on march 17. the entry to record the transaction of march 17 would include a a.debit to stock dividends for $78,000 b.credit to cash for $78,000 c.credit to common stock dividends distributable for $78,000 d.credit to common stock dividends distributable for $18,000

Q: Using the following information, prepare a bank reconciliation for Candace Co. for May 31:(1) The bank statement balance is $2,936.(2) The cash account balance is $3,194.(3) Outstanding checks amounted to $465.(4) Deposits in transit are $655.(5) The bank service charge is $50.(6) A check for $97 for supplies was recorded as $79 in the ledger.

Q: on january 1, hamblin corporation had 80,000 shares of $10 par value common stock outstanding. on march 17 the company declared a 10% stock dividend to stockholders of record on march 20. market value of the stock was $13 on march 17. the stock was distributed on march 30. the entry to record the transaction of march 30 would include a a.credit to cash for $80,000 b.debit to common stock dividends distributable for $80,000 c.credit to paid-in capital in excess of par value for $24,000 d.debit to stock dividends for $24,000

Q: Why would a bank require a company to maintain a compensating balance?

Q: on january 1, hamblin corporation had 80,000 shares of $10 par value common stock outstanding. on march 17 the company declared a 10% stock dividend to stockholders of record on march 20. market value of the stock was $13 on march 17. the entry to record the transaction of march 17 would include a a.credit to stock dividends for $24,000 b.credit to cash for $104,000 c.credit to common stock dividends distributable for $80,000 d.debit to common stock dividends distributable for $80,000

Q: *john jones company has 20,000 shares of $100 par value common stock. assuming that the proper journal entry was made to record a 5% common stock dividend on the declaration date when the market value of the stock was $135, which of the following accounts would be debited when the stock dividend is distributed? a.retained earnings b.dividends payable c.common stock dividends distributable d.paid-in capital in excess of par value

Q: The last custodian of the petty cash fund was hospitalized, and you have been asked to take stock of the fund and replenish it. When you receive the fund, it has $299 in cash and receipts as follows:Office supplies $295Advertising 120Transportation by taxi 75The petty cash fund was established to have $800 in it.Based on what you have found, what journal entry should be recorded to replenish the fund?

Q: Groceries R Us, Inc., reported the following data in its annual report.Cash and cash equivalents $2,280,000Cash flow from operations (240,000)a. What is the company’s “cash burn” per month?b. What is the company’s ratio of cash to monthly cash expenses?c. Interpret the ratio you computed in part (b). What are the implications for Groceries R Us, Inc.?

Q: which of the following statements is true regarding corporate performance ratios? a.a high payout ratio may indicate that a company is retaining earnings for future growth investments b.as a company grows larger, it is easy to sustain a high return on common stockholder's equity c.return on common stockholder's equity is often higher under bond financing rather than common stock financing d.companies low growth rates are characterized by low payout ratios

Q: You began your new job as the accountant for Morton Company. You were surprised to find that the company had a $2,000 petty cash fund, which sits in the break room. The president of the company told you: “Our petty cash system here works quite smoothly. Since everyone is honest here, everyone has access to the fund for incidentals that might pop up in the course of the business day. Most of these situations don’t have any receipts tied to them, so I just put the money back in the fund when my secretary tells me that we have run out of petty cash and we debit the amount to Miscellaneous Expense.” ​Answer the following:a. Should you implement some controls on petty cash? Why?b. If so, what controls could be used for petty cash?

Q: The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.Total asset $400,000Stockholders’ equity—common 200,000Total stockholders’ equity 280,000Sales 120,000Net income 30,000Number of shares of common stock 8,000Common stock dividends 9,000Preferred stock dividends 6,000What is Marsh’s return on common stockholders’ equity ratio?a. 15%.b. 12%.c. 10.5%.d. 8.6%.

Q: a. Where are cash equivalents disclosed in the financial statements?b. List three examples of cash equivalents.

Q: The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures.Total asset $400,000Stockholders’ equity—common 200,000Total stockholders’ equity 280,000Sales 120,000Net income 30,000Number of shares of common stock 8,000Common stock dividends 9,000Preferred stock dividends 6,000What is Marsh’s payout ratio?a. 50%.b. 30%.c. 20%.d. 7.5%.

Q: The following data are from the Muffin Shoppe for the past four years. ​Year Ending December 31​Year 1Year 2Year 3Year 4Cash and cash equivalents$ 38,788 $ 65,216 $ 70,691 $ 78,274 Cash flow from operations(39,264)(50,580)(45,768)(57,744)​Compute the following:​Year Ending December 31​Year 1Year 2Year 3Year 4Monthly cash expenses​​​​Ratio of cash to monthly cash expenses​​​​

Q: The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets $300,000Stockholders’ equity—common 160,000Total stockholders’ equity 200,000Sales 100,000Net income 20,000Number of shares of common stock 6,000Common stock dividends 6,000Preferred stock dividends 4,000What is the return on common stockholders’ equity ratio for Benedict?

Q: The following information pertains to Benedict Company. Assume that all balance sheet amounts represent average balance figures.Total assets $300,000Stockholders’ equity—common 160,000Total stockholders’ equity 200,000Sales 100,000Net income 20,000Number of shares of common stock 6,000Common stock dividends 6,000Preferred stock dividends 4,000What is the payout ratio for Benedict?a. 50%b. 30%c. 20%d. 6%

Q: Journalize the following transactions related to petty cash:a. Established a petty cash fund of $235.b. The petty cash fund now has a balance of $42.80. Replenished the fund, based on the following disbursements as indicated by a summary of the petty cash receipts: office supplies, $74.50; miscellaneous administrative expense, $92.75; and miscellaneous selling expense, $18.60.c. Increased the petty cash fund to $300.

Q: From the information below, compute the payout ratio for Kevin’s Trailers.Net Income $200Cash Dividends (common) 50Retained Earnings 500Stock Dividends (common) 10a. 30%.b. 25%.c. 10%.d. 2%.

Q: Farm Store, Inc., reported the following data in its December 31 annual report:Cash and cash equivalents $1,050,000Cash flow from operations(420,000)a. What is the company’s “cash burn” per month?b. What is the company’s ratio of cash to monthly cash expenses?c. Interpret the ratio you computed in part (b). What are the implications for Farm Store, Inc.?

Q: Using the following information, prepare a bank reconciliation for Miller Co. for August 31:(1) The bank statement balance is $4,690.(2) The cash account balance is $5,080.(3) Outstanding checks amounted to $715.(4) Deposits in transit are $1,020.(5) The bank service charge is $40.(6) A check for $72 for supplies was recorded as $27 in the ledger.

Q: herman corporation had net income of $160,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2012. herman corporations common stockholders equity at the beginning and end of 2012 was $450,000 and $550,000, respectively. herman corporations payout ratio for 2012 is a.$5 per share b.25% c.20% d.12.5%

Q: herman corporation had net income of $160,000 and paid dividends of $40,000 to common stockholders and $20,000 to preferred stockholders in 2012. herman corporations common stockholders equity at the beginning and end of 2012 was $450,000 and $550,000, respectively. herman corporations return on common stockholders equity is a.32% b.28% c.24% d.20%

Q: Scharf Company is a retailer located in a state without sales tax. The following data were given to you to complete the transactions for the day’s sales to be recorded. All cash drawers start with $100 in change. Reg. 1Reg. 2Reg. 3Reg. 4Cash in drawer$974.50$1,383.66$939.46$1,137.91Sales reading879.501,298.16839.461,030.33Journalize the entries for the cash receipts and cash sales for EACH cash register separately.

Q: The following data were gathered to use in reconciling the bank statement of Build-A-Lot:Balance per bank$14,355Balance per company records14,010Bank service charges80Deposits in transit4,100NSF checks775Outstanding checks5,300​a. What is the adjusted balance on the bank reconciliation?b. Journalize any necessary entries for Build-A-Lot based on the bank reconciliation

Q: ferman corporation had net income of $200,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2012. ferman corporations common stockholders equity at the beginning and end of 2012 was $870,000 and $1,130,000, respectively. ferman corporations payout ratio for 2012 was a.$5 per share b.35% c.25% d.10%

Q: On April 3, Snappy Sales decides to establish a $135 petty cash fund to relieve the burden on Accounting.a. Journalize the establishment of the fund.b. On April 11, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00, and $9.75 in cash. Journalize the replenishment of the fund.c. On April 12, Snappy Sales decides to increase petty cash to $175. Journalize this transaction.

Q: ferman corporation had net income of $200,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2012. ferman corporations common stockholders equity at the beginning and end of 2012 was $870,000 and $1,130,000, respectively. ferman corporations return on common stockholders equity was a.20% b.18% c.15% d.13%

Q: The following data were gathered to use in reconciling the bank account of Savannah Company:Balance per bank $16,750Balance per company records 16,125Bank service charges 80Deposit in transit 2,195NSF check 950Outstanding checks 3,850​What is the adjusted balance on the bank reconciliation?

Q: the return on common stockholders equity is computed by dividing net income a.by ending common stockholders equity b.by average common stockholders equity c.less preferred dividends by ending common stockholders equity d.less preferred dividends by average common stockholders equity

Q: The bank statement for Gatlin Co. indicates a balance of $7,735 on June 30. The cash balance according to the company’s records is $4,098. The following additional data were gathered to use in reconciling the bank account:(1) Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724.(2) Deposits in transit not recorded by bank, $425.(3) Bank debit memo for service charges, $35.(4) Bank credit memo for note collected by bank, $2,475 including $75 interest.(5) Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer.(6) Checks outstanding, $1,860.Journalize any necessary entries for Gatlin Co. based on the bank reconciliation data.

Q: the payout ratio is computed by dividing a.total cash dividends paid by retained earnings b.dividends paid per share by net income c.total cash dividends paid by net income d.dividends paid per share by year-end stock price

Q: in published annual reports a.subclassifications within the stockholders equity section are routinely reported in detail b.capital surplus is used in place of retained earnings c.the individual sources of additional paid-in capital are often combined d.retained earnings is often not shown separately

Q: Consider the following information from the company’s records. Assume cash payments (checks) were 84% of collections (deposits).Cash ??Beg. balance$245,000Deposits??Checks$80,275End. balanceHow much was the beginning balance of the cash account?

Q: The bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. The cash balance according to the company’s records is $8,998. The following additional data were gathered to use in reconciling the bank account:(1) Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495.(2) Deposits in transit not recorded by bank, $778.(3) Bank debit memo for service charges, $40.(4) Bank credit memo for note collected by bank, $23,985 plus $885 interest.(5) Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer.(6) Checks outstanding, $1,860.Journalize any necessary entries for Jeffrey Co. based on the bank reconciliation data.